POS Systems

10 Retail POS Buying Tips

Many retailers are considering upgrading their existing retail pos systems to newer computer based retail systems. Many of them are doing so to take advantage of new hardware technology such as scanners, thermal printers, mag card technology, etc.. As well there have been numerous time saving retail pos software advances like inventory control, customer loyalty programs, touch screens and accounts receivable.

Once you have determined that you require an upgrade in your retail pos system there are some things toconsider to ensure you not only get a system that works for you today, but one that will grow with your retail business in the future.

1. Before you approach a retail point of sale company, venture out in the retail community and see what is in industry stores such as yours. Ask the retailers what they like about their systems, what they don’t like, and who they bought there retail system from, and would they recommend this POS company.

2. Form your wish list of features that you would like to see in your retail pos system determine features that are a must have, features you a would like to see and features that would be great but are not a condition of a sale

3. Your next step is to search for the retail point of sale vendor. Do not underestimate how important it is to select the right POS vendor. Ensure the vendor is reputable and has been in business in the community for a number of years. Ask for references on customers that are new and ones that have been around for a while. The new customers will allow you to know what the sales experience was like and the older customers can let you know how the service has been.

Additional Considerations for retail pos vendor selection:

Ensure the distributor has local service. This would mean that the customer should not have to have a technician travel half way across a province to service them. Do not underestimate how important local service is. The first time you have a system problem, this may be crucial in getting you up in a timely manner.
Discuss with the vendor what their hourly rates are including after hours. Make sure you know how long there warranty is and if it is on site or do you have to take the broken part to them., this is known as depot service. Do they have a daily maximum charge for service, this can be cheaper then by the hour. How do they charge for travel time, is it the moment they leave the shop and do you get charged both ways.
Any doubts that arise should be addressed. If you get a bad feeling do not deal with them. If they fail to answer any questions this should raise a red flag.

4. Once you have found the right company, the sales person should come down and check out your store, if he doesn’t, invite him down. If possible you should go to the Retail POS vendors office for the demonstration on your system. This will accomplish two things:

You are able to ensure they have an office, and ask for a tour and get them to show you their spare parts area.
It allows you to get away from the store and fully concentrate on your demo. Give the sales person the courtesy of your full attention.

5. You should bring out your wish list of what you need in a system, it should be as detailed as possible. A good sales person will ask you a number of questions ahead of time to ensure he knows your needs and is selling you the right retail pos product. Make sure you see every feature you want. Ensure you understand what you are seeing, if not ask. The most common mistake a customer will make is assuming the system does something because other systems you saw did them. Never assume, if you can’t see it working, chances are it is smoke and mirrors.

6. Once your demo is complete, you should ask for a quote on the retail point of sale system that you want. Here a few other questions that you should ask:

What is the length of a warranty on hardware and software?
What is the cost of a maintenance contract after the warranty period is over?
If I have a maintenance agreement are software upgrades at no cost?
Is leasing an option?
Ask for a written description of the install procedure.
Is database building included in the cost, if not can, a database conversion be done and at what cost?

7. Once you have the proposal there are a few points to consider:

Do not always buy on price. Price should be a consideration, but not the final consideration. Many companies low ball their price because they know what their stuff is worth.
The lowest priced quote does not make it the best. Chances are there are hidden costs that you don?t see. Ask how much time there is on site, is there a charge for running cables? Is installation included? Are you responsible for meals and accommodations?
When you are comparing quotes ensure you are comparing apples to apples and not apples to oranges. This will enable you allow a fair analysis of the quotes.
All of the retail pos equipment should be brand name equipment. In the industry this is referred to as tier one components or retail hardened. Yes, it is more expensive, but the investment in the equipment will pay off ten fold. First the reliability factor is greatly increased, the equipment will not fail you in critical times, like Christmas rush and second you may pay more up front, but you will save huge when you don?t have to service it for 5 years.

There is one saying that comes to mind that we have all heard before and they are so true in the pos industry.

“You get what you pay for!”

8. Once you have chosen your vendor you will negotiate the best price. There are a few considerations to keep in mind:

First always ask if this is the best price, if the company is able to drop off several thousand dollars off the price after you ask this, there should be several red flags raised. You should not view it as the company was able to reduce the system the so now I get a 30,000.00 for 25,000.00. What would have happened if you had not asked for the best price?
Second, and worthy of consideration. Remember chances are if you grind your sales person down to the point there is so little profit in the deal, you will reduce any good will. Companies operate on profit, just as you do. If the deal is so low, you should be worried if they can service you in the future.

9. Once you have signed the papers. Ensure you get an installation date suited for you. Do not install 2 weeks before Christmas or any time of year that is busy.

10. Once you have the install date taken care of there some final details to look at.

If you are building your own database have the software installed and have yourself trained well before the installation occurs. Have the database done and ready to go before you have the trainers show up.
Ensure you staff are at the store for installation. Have extra staff on the floor and at the tills to ensure customer service is not disrupted.
Free your time up for the installers. This is so important. You are paying them a lot of money to be there to train you, give them your time and undivided attention. The small sacrifice will pay off in spades once they leave.
During training remember there are no dumb questions, ask any question you feel is relevant.
Make sure you have a wiring diagram given to you. Have a electrician run the cable for you. Have the cable terminated into a proper network box. The small cost of doing this will prevent wiring nightmares down the road.

11. Bonus point. Even though this not about buying a retail pos system, DO YOUR BACKUPS and do them often.